The Overlooked AI Chip Stock That Could Outperform Nvidia in 2026

Group 1: AI Chip Market Dynamics - Nvidia has established itself as the leader in AI chips with its GPUs, which require high-bandwidth memory (HBM) for optimal performance [1] - HBM, a specialized form of DRAM, is crucial for enhancing GPU performance, leading to skyrocketing demand and a supply shortage in the DRAM industry [2] Group 2: Micron Technology's Position - Micron Technology is well-positioned to capitalize on the growing demand for HBM, with DRAM accounting for approximately 80% of its revenue and NAND for 20% [4] - In its fiscal first quarter, Micron reported a 57% increase in revenue and a nearly 2.7 times rise in adjusted EPS to $4.78, with adjusted gross margin increasing to 56.8% from 39.5% year-over-year [5] Group 3: Future Growth and Investments - Micron anticipates the HBM market to grow at an annual rate of 40% through 2028, reaching $100 billion, prompting an increase in its capital expenditure budget from $18 billion to $20 billion [6] - The company plans to construct a new chip manufacturing facility in New York and expects a new fab in Idaho to be operational sooner than anticipated in 2027 [6] - The ongoing supply-demand imbalance in the memory market is expected to drive significant growth for Micron, with strong free cash flow enabling it to achieve a net cash positive status [7]